Chattanooga (May 6, 2008) – In 2007, Unum sold more cases, covered more lives and earned more premium than any other carrier through its employer-sponsored group long term care product, according to annual sales research.[i]
Unum added nearly 1,200 new businesses and nearly 83,000 new employees in 2007, reflecting a 20 percent increase over 2006.
Now covering more than 650,000 working-age Americans, Unum holds 76 percent of the employer group long term care insurance contracts in the United States making Unum the No. 1 carrier for inforce cases and lives.
“The aging of the workforce, the shift of healthcare costs to employees and the government attention and publicity long term care has received have contributed to the favorable spotlight long term care insurance is now in,” said Mike Simonds, chief marketing officer for Unum US. “The industry as a whole is seeing an increase in sales as employers are realizing the importance of long term care insurance as an important component of a comprehensive financial plan and a differentiating employee benefit.”
Unum has seen a consistent increase in the employer-sponsored benefit. “Four or five years ago, half our business was fully employee funded. Now, we’re seeing 90 percent of business being employer-funded,” said John Noble, director of long term care products.
Employers are providing long term care insurance with a variety of funding options from 100 percent employee paid voluntary coverage to a shared cost arrangement under group plans. Noble notes that when employers share the cost of this benefit, they see a doubling of participation when compared to 100 percent voluntary plans.
Sales research also reported a 19 percent sales growth in new employer groups over 2006.[ii] More than 9,000 employers offer long term care insurance as part of an employee benefit package. Through these plans, more than 2.1 million American workers participate in this benefit.
About Unum
Unum (www.unum.com) is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum paid more than $6 billion in total benefits to customers in 2007.